This article is a list if items that several groups of small business mastermind groups came up with from my poll question, what do you deduct or write-off in your woodworking, CNC milling or Laser etching small business?
It feels wrong to be writing about taxes, but here I am!
First off, let me say, I am NOT an accountant, nor do a I really know tax law. I have someone for that! (Royce cut wood – in best Cro-magnon man voice)
Secondly, this is just a list of opinions. What other people do. That (as a bit of a disclaimer) doesn’t necessarily make it legal. Check out the list, spur some ideas about what you are or are not doing, and then figure out if it makes sense for you to do it.
A Tax Deduction is the amount you can deduct from your taxible income to lower the amount of taxes you will have to pay. An example for my small business is that I could deduct the CO2 Laser I bought this year because it is specifically a tool for my business. The US tax law about deducations can be found HERE.
Well, unfortunately, a Write-Off is just another name or slang for a Tax Deduction! So stick with the concept of deductions as we work our way through this!
Unlike a deduction, a Tax Credit comes straight off the money you owe. It directly reduces your taxable income. The US tax information about small business credits is found HERE.
Again folks, I’m not a CPA or accountant. Didn’t study Tax Law. This is a list of items from several Mastermind Groups I belong to, the validity of the items is not verified so look into the law before you jump in and claim your Chihuahua as a security expense.
Wrapping this up, I kind of want to reiterate that this is just to get you thinking about where you are losing money and not specifically advice. I am not an accountant, am not classically trained in tax law, it’s just me and a bunch of other Wood/CNC/Laser workers sharing thoughts. Please take this and share it, and comment if you have any other big items about Small Business Tax Deductions.
Have a great one!
Hill Country CNC & Woodwork
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